No MRP Doesn't Mean Imported Pet Food Isn't 'Put Up For Retail Sale' If It's Consumer-Ready: Bombay High Court

The Bombay High Court on Wednesday held that the absence of a maximum retail price (MRP) does not by itself prevent imported pet food packs from being treated as goods "put up for retail sale," even if they are repacked into smaller units after customs clearance.A division bench of Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla observed,"The absence of MRP does not detract from this status, especially as the packs fall below the 25 kg exemption threshold under Rule 3(a) of the Legal...

CESTAT Mumbai Sets Aside Extended Limitation Against boAt Maker In Bluetooth Earphones Customs Dispute

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the extended limitation period could not be invoked against Imagine Marketing Ltd., the company behind the boAt brand, in a dispute over the tariff classification of imported wireless Bluetooth earphones. The tribunal found that the dispute was purely interpretational and that the Department had failed to establish collusion, wilful misstatement or suppression of facts"There is no element of...

CESTAT Delhi Upholds Inclusion Of Downloaded Software Licence Value In Imported Dongles' Customs Value

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld the inclusion of the value of software licences downloaded from the internet in the assessable value of imported hardware locks (dongles). It held that the downloaded software formed an integral part of the imported product and that its value formed part of the transaction value.A coram of Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the...

CESTAT Kolkata Sets Aside Interest Demand On Dalmia Cement's Capital Goods Imported Under MOOWR Scheme

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside the interest demand raised against Dalmia Cement (Bharat) Ltd. on customs duty paid while clearing imported capital goods from its bonded warehouse. The tribunal held that interest could not be demanded merely because the goods were cleared for home consumption without being put to use, where they had been imported with the intention of being used in manufacturing.Relying on Supreme Court...

CESTAT Chennai Reiterates NIDB Data Alone Cannot Justify Rejection Of Declared Import Value

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that the National Import Database (NIDB) data alone cannot justify rejection of the declared transaction value of imported goods or enhancement of their assessable value. It held that the Customs Department must produce independent evidence of undervaluation and establish the comparability of contemporaneous imports before discarding the declared value.A coram of Judicial Member Ajayan T.V. and...

Customs Duty Exemption Available For ELISA Kits Cannot Be Claimed By Individual Components: CESTAT Delhi

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently held that QFT Tubes, though functionally used with ELISA kits, are not entitled to the concessional 5% Basic Customs Duty (BCD) available to ELISA kits. ELISA (Enzyme-Linked Immunosorbent Assay) is a diagnostic testing method used to detect diseases by analysing blood samples.It held that the exemption applies only to the complete diagnostic kit and not to its individual...

CESTAT New Delhi Restores India-Thailand FTA Benefit To P.C. Jeweller Citing Verification Rules

On Tuesday, 14 July, the Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi, held that the Directorate of Revenue Intelligence (DRI) cannot deny preferential customs duty benefits under the India-Thailand Free Trade Agreement without following the prescribed procedure to verify Country of Origin (COO) Certificates with the issuing authority. A Bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed a batch of appeals filed by...

CESTAT Hyderabad Sets Aside ₹26.60 Lakh Customs Duty Demand, Rules Imported Quicklime Is Not Chemical Product

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the appeal filed by V I S A Steel Ltd., holding that imported quicklime is classifiable as lime under the Customs Tariff and not under the tariff entry applicable to chemically defined compounds. The tribunal set aside a differential customs duty demand of ₹26.60 lakh, along with the interest and penalty. A bench of Judicial Member Angad Prasad and Technical Member P. Anjani Kumar observed: ...

CESTAT Kolkata Sets Aside ₹50 Lakh Penalty Against Individual In Silk Necktie Export Drawback Case

According to the tribunal, obtaining a fake driving licence may amount to a criminal offence, but by itself did not attract penalties under the Customs Act

CESTAT Ahmedabad Says Director's Position Alone Cannot Attract Customs Penalty Quashes ₹1 Cr Levy

On 9 July, the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that a company director cannot be penalised under the Customs Act, 1962 merely because of his position in the company unless the Department proves his active involvement in the alleged offence. Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh allowed the appeal filed by Global Enterprises' director Altaf Ahmed and set aside the Rs. 1 crore penalty imposed...

CESTAT Mumbai Sets Aside Customs Broker Licence Revocation For Lack Of Independent Findings

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside the revocation of a Customs Broker's licence. It found that the customs department failed to establish that the broker had breached its obligations while handling exports that were later alleged to have been overvalued to claim higher duty drawback. A tribunal comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that the licensing authority had failed to independently...

CESTAT Chennai Sets Aside Customs Duty Demand After Royalty Was Added To Import Value

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand that arose after royalty payments were added to the transaction value of imported raw materials. The tribunal followed its earlier ruling in the same company's case after finding that the Revenue had not shown any change in facts, produced any new document, or established any change in law to justify taking a different view. The bench of Judicial Member P. Dinesha and...